Ralph Lauren 4Q16 Earnings Call Notes

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Ralph Lauren (RL) Q4 2016 Results

We have not focused enough on the core

“In short, we have not focused enough on nor evolved enough the core of what made us great in product, marketing and the shopping experience. In addition, our underlying business engines are not running at full speed. We also have an inefficient cost structure and an organization that’s not nimble enough in the marketplace.”

Dodgy response to whether or not Amazon is a distribution partner

“In parallel with that, we are expanding our direct-to-consumer channels, and out of those channels, the e-commerce is by far the most important to get back to strength and high performance. And overall when it comes to the channels in the U.S., we are working to make sure that we secure the high-quality distribution, right balance in the distribution between the different channels, and we’ll come back and give you more details in June.”

Pricing power is about having the best products

“Thanks, David. So when it comes to pricing, I believe that we’re in a world where the consumer decides today. So charging (32:58) a premium pricing comes back to having the best products, and that’s what our strategy is focused on, to go back to the core of who we are and where we come from and evolve that and make it current for today and have better authentic style, better quality and be more relevant, and that connects to the pricing. And when it comes to the actual product strategy, I look forward to sharing that more in detail when we see each other in June.”

Teased analyst day

“Yes. John, again, sorry to disappoint you. The in-depth sharing of this we’ll have to wait until June, but higher level I’m very excited when it comes to unlocking supply chain capabilities. And getting to know the business the way I’ve done over the last months and getting to know how our customers work, I see big opportunities in implementing a lot of the same best practice. And also excited by seeing that our wholesale partners are very excited and willing to dive into improving the supply chain together with us.”